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Report: GOP budget cuts would hit U.S. economy (Goldman Sachs analysis, 'growth cut by half')
Los Angeles Times ^ | 2/23/11 | Lisa Mascaro

Posted on 02/23/2011 7:28:51 PM PST by NormsRevenge

Spending cuts approved by House Republicans would act as a drag on the U.S. economy, according to a Wall Street analysis that put new pressure on the political debate in Washington.

The report by the investment firm Goldman Sachs said the cuts would reduce the growth in gross domestic product by up to 2 percentage points this year, essentially cutting in half the nation's projected economic growth for 2011.

The analysis, prepared for the firm's clients, represents the first independent economic assessment of the congressional budget fight, which could lead to a government shutdown as early as next week.

Nonetheless, Republicans are unlikely to easily retreat from their insistence on more than $60 billion in reductions in federal spending as a condition of continuing funding for the government through the rest of the year.

A spokesman for House Speaker John A. Boehner of Ohio said the Goldman Sachs report represented "the same outdated Washington mind-set," comparing it to the thinking behind the 2009 Recovery Act that released federal funds to counter the effects of the recession.

But Democrats seized on the report as a validation of their arguments against the Republican cuts.

"Just as the economy is beginning to pick up a little steam, the Republican budget would snuff out any chance of recovery," said Sen. Charles E. Schumer (D-N.Y.).

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Culture/Society; Government; Politics/Elections
KEYWORDS: budgetcuts; economy; gdp; goldmansachs; gop
Hey Clueless DemocRats, go sit on a lamp post or shovel snow or sumthin'.

It's like we have a Big Gubamint Mutual Assured Destruction Doomsday Machine Entitlement thingy.

Alice in WonderLand mixed with BiZarro World

1 posted on 02/23/2011 7:28:54 PM PST by NormsRevenge
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To: NormsRevenge

They aren’t clueless, they are shameless LIARS.


2 posted on 02/23/2011 7:30:49 PM PST by politicalmerc (I TOLD YOU I could see November from my house. Now I see 2012!!)
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To: NormsRevenge

Screw Goldman Sachs, damn bunch of democrat sleaze bags.


3 posted on 02/23/2011 7:31:37 PM PST by org.whodat
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To: NormsRevenge

Not to sound paranoid, but Goldman Sachs has made several large fortunes on the TARP bailout and other government activities. The last thing they want is a return to the marketplace.

They were very large donors to Obama, and Hank Paulson, who was foolishly made Treasury Secretary by Bush, worked hard to get Obama elected by pulling that October Surprise of his, which left McCain with his mouth hanging open and presented Obama as a financial genius.

Paulson was formerly CEO of Goldman Sachs.


4 posted on 02/23/2011 7:32:31 PM PST by Cicero (Marcus Tullius)
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To: NormsRevenge

I basically agree with this assessment. The economy has been artificially inflated with an orgy of government spending. Unfortunately, the bill has come due. There will be short term pain to tame government spending. The alternative is an economic collapse when the world rejects tht dollar.

Reducing spending is only half the equation. We need to make the country attractive for investors especially investments in human capital. The massive mountain of new regulations on employment and production will still impede investment evan after spending reductions are made.


5 posted on 02/23/2011 7:33:35 PM PST by businessprofessor
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To: NormsRevenge
Yeah, as opposed to kicking the proverbial can down the road and raising the debt ceiling, quantitative easing, additional indebtedness to the Chinese, .. all of which are working splendidly. Stay the effin course!
6 posted on 02/23/2011 7:34:35 PM PST by PDMiller
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To: NormsRevenge

Goldman Sachs? Shouldn’t most of those folks be in jail with Bernie Madoff?


7 posted on 02/23/2011 7:36:18 PM PST by RckyRaCoCo (I prefer liberty with danger to peace with slavery, IXNAY THE TSA!)
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To: NormsRevenge

If we continue on the course we’re on, Big Government will snuff out our children’s future. The present course is not sustainable in the short term or in the long term.


8 posted on 02/23/2011 7:36:18 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: org.whodat

That would be the same GOldman Sachs who
....got money on the sly from Obama to help bail them out at our expense
....donates big time to the Democrats to the tune of millions of dollars
.... are hoping for more money from their pals in government.

They are sleeze


9 posted on 02/23/2011 7:36:44 PM PST by t2buckeye
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To: NormsRevenge

This is equivalent to the Foxes instructing the Farmer how to build the chicken coop...


10 posted on 02/23/2011 7:36:48 PM PST by dps.inspect (the system is rigged...)
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To: NormsRevenge

I wonder. Will it be as much a drag as your $12.9 Billion bailout drag is still causing?

STFU, and get your own self serving house aligned with the interests of our nation, butttwinkie!!!


11 posted on 02/23/2011 7:38:15 PM PST by papasmurf (War is hell, but not the worst hell. Having a PRES__ENT comes close!)
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To: RckyRaCoCo

... and Bawny Fwank?...


12 posted on 02/23/2011 7:38:23 PM PST by dps.inspect (the system is rigged...)
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To: dps.inspect

they are probably shorting the US dollar


13 posted on 02/23/2011 7:38:29 PM PST by mriguy67
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To: NormsRevenge

Government budget cuts would help the economy because necessary federal programs would be saved (like Social Security and Medicare) at the expense of non essential ones like THE DEPARTMENT OF EDUCATION, THE HIGH SPEED RAIL PROJECT, OBAMACARE, THE FDA, THE IRS, NPR, THE NATIONAL ENDOWMENT OF THE ARTS, PLANNED PARENTHOOD, FOREIGN AID TO DICTATORS, etc.

State budgets could be brought under control with massive cuts in union pay and benefits, cuts in services and benefits to illegals, etc.


14 posted on 02/23/2011 7:39:28 PM PST by Ev Reeman
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To: mriguy67

...and screwing the pooch...


15 posted on 02/23/2011 7:39:38 PM PST by dps.inspect (the system is rigged...)
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To: NormsRevenge

If we are borrowing and printing money to prop up the economy it is NOT growing.


16 posted on 02/23/2011 7:40:22 PM PST by Islander7 (There is no septic system so vile, so filthy, the left won't drink from to further their agenda)
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To: NormsRevenge

GDP, as reported by the Bureau of Lies and Statistics, includes 13% government spending. Back out the taxpayer subsidy and we haven’t had positive GDP for decades. The republicans are offering the people a small small break and Goldman has a fit. Their executives might have to trim a few million from their annual bonuses. If we don’t ditch these bloodsuckers soon, we won’t have a country worth saving.


17 posted on 02/23/2011 7:41:11 PM PST by Grim (That's why I'm voting for Sarah.)
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To: NormsRevenge

Hey, if I were stupid, I could be a journalist too.


18 posted on 02/23/2011 7:44:17 PM PST by Da Coyote
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To: businessprofessor

Bingo.


19 posted on 02/23/2011 7:44:36 PM PST by GlockThe Vote (Who needs Al Queda to worry about when we have Obama?)
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To: NormsRevenge

I’m not aware of a reason not to view Goldman Sachs as a criminal enterprise...


20 posted on 02/23/2011 7:46:07 PM PST by wendy1946
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To: Grim

Hey, Times are hard on Wall ST. too.. bonuses are down 8% to 20 billion or so..

NY: Wall Street 2010 bonuses estimated at $20.8B
AP
http://news.yahoo.com/s/ap/20110223/ap_on_re_us/us_wall_street_bonuses

ALBANY, N.Y. - Wall Street paid an estimated $20.8 billion in bonuses to New York City securities industry employees for 2010, the first full year after the national recession officially ended, New York state Comptroller Thomas DiNapoli said Wednesday.


21 posted on 02/23/2011 7:47:01 PM PST by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
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To: Cicero

Goldman Sachs is one of the few primary dealers of US Treasuries. When the FED buys, they go through Goldman Sachs, probably for higher prices than necessary - which is one of the back-door bailouts these firms receive.


22 posted on 02/23/2011 7:48:36 PM PST by PGR88
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23 posted on 02/23/2011 7:54:48 PM PST by Milhous (Lev 19:18 Love your neighbor as yourself.)
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To: PGR88

Goldman Sachs like ATT needs to be broken up and spun off.


24 posted on 02/23/2011 7:55:08 PM PST by Rodm
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To: PGR88

Goldman Sachs is corrupt and should be investigated for insider trading, corruption, bribery of government officials, malfeasance, money laundering, violations of RICO provisions, etc.


25 posted on 02/23/2011 7:55:34 PM PST by Ev Reeman
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To: Ev Reeman

Just who from this sack of *&^* (R)s would investigate them? No one.


26 posted on 02/23/2011 8:01:56 PM PST by Digger ((If RINO is your selection, then failure is your election))
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To: NormsRevenge

The Rats know that the economy is still going to be a disaster in 2012, and they intend to blame the GOP.

So their bankster arm is helping to lay the groundwork.


27 posted on 02/23/2011 8:08:53 PM PST by Interesting Times (WinterSoldier.com. SwiftVets.com. ToSetTheRecordStraight.com.)
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To: NormsRevenge

One thing I hope is that, although it wouldn’t be a great deal of monetary savings, we radically cut back those agencies piling regs, fees, and taxes on business.


28 posted on 02/23/2011 8:13:09 PM PST by Free Vulcan (Vote Republican! You can vote Democrat when you're dead.)
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To: NormsRevenge

Yeah, let’s just keep spending like lunatics.


29 posted on 02/23/2011 8:23:17 PM PST by Rocky (REPEAL IT!)
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To: NormsRevenge

Yeah hit it in the a$$ and get it moving forward again... what a bunch of globalist commie banker thieves.

LLS


30 posted on 02/23/2011 8:28:57 PM PST by LibLieSlayer (WOLVERINES!!!)
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To: NormsRevenge
Maybe I'm over simplifying...but here's what happened.

Mom and Dad (republicans) lost their jobs. They had to leave the house for an extended period of time to look for other jobs. In the meantime the kids (democrats)who were left at home with strict instructions (the constitution)on how to manage the house, discovered that they had access to Mom and Dad/s credit cards.

They had one of 2 choices. Act like responsible adults, manage the house (that was now on shaky ground), by the strict rules (constitution) intended to guide their actions through difficult times or...take the credit cards, forget the rules and party like there is no tomorrow and the bills will never have to be paid.

Unfortunately the children chose the latter. But Oh-oh, now Mom and Dad come home. Mom got a job but Dad didn't so things are still very shaky. But now Mom and Dad learn that the bad situation they left behind has been made immensely worse by the irresponsible uncontrolled spending binge of the children.

But what hurts just as much, is that after years of believing that the family all honored the same set of rules, the parents have learned that those immature little brats never believed in the rules at all. It was just a game of convenience. And it was much more convenient to spend other peoples money and avoid taking tough action, than to remain true and steadfast and tighten your belt for a while.

Now Mom and Dad have an even bigger whole to dig out of. In the meantime the kids will go back to complaining because cable TV and high speed internet needs to be shut off, they have to pack their own lunches and they won't get an allowance for just showing up with their hands out each time the calendar says Friday.

31 posted on 02/23/2011 8:39:25 PM PST by Awgie (truth is always stranger than fiction)
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To: NormsRevenge

LIke I am going to take advice from the oens who helped create the meltdown in the first place...no thanks!


32 posted on 02/23/2011 9:04:37 PM PST by chris_bdba
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To: NormsRevenge

You can see what is shaping up here.

Dear Reader has created chaos in the Middle East (training coup leaders in Egypt, for example) and oil is sky rocketing. The Fed and Treasury policy was kicking off serious inflation even before Obama threated our oil supply.

It will be the Republicans’ fault for being fiscally responsible when the economy collapses.


33 posted on 02/23/2011 9:29:53 PM PST by SaraJohnson
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To: NormsRevenge

So now the Left wing loons are quoting the Looters from Wall St. that they Condemn every chance they get. I guess Goldman Sachs is Ok since Most of them work in the White House Now


34 posted on 02/24/2011 3:50:56 AM PST by ballplayer
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To: NormsRevenge

“Growth”? WTF??!these people are clueless.


35 posted on 02/24/2011 3:53:24 AM PST by mo ("If you understand, no explanation is needed; if you do not, no explanation is possible")
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